My FIL "retired" from the work force ~25 years ago meaning he convinced SS he just couldn't work anymore.  He was on disability and medicaid and when he turned 65 they moved him to medicare I believe.  He has a dependent daughter (47) at home, she is mentally challenged.  I think she would grow exponentially if she could get out from under his control.  Years ago she wanted to get a job at Jewel bagging groceries, he said no, you will lose your SS and we need it to run the house.

FIL's sister died about four years ago, left everything to him, to the tune of hundred of thousand of dollars.  He was complaining to me that if he took the money he would lose his medicaid or medicare because now he had assets and he would be required to purchase health insurance.  "They want 1500.00 a month and that's just God damn ridiculous."   He did end up taking the inheritance.

My wife has tried talking to him about a will.  Our concern is that the dependent daughter is provided for.  He will not have a serious conversation about it.  "Yeah, I know i need to do something."  WTF?  Get off your ass and get your affairs in order.  He is 72, has breathing issues and two heart attacks.  

So, what happens when he dies?  My wife has two brothers and another sister and I'm willing to bet they will demand their "share" of dad's estate. We're hoping he puts everything into a trust for the dependent daughter but can he if she is on SS !

Wife pic taken down, sorry guys.

I am not sure, but I will say I have seen some pure ugliness happen when parents pass away.

Unfortunately a will is meaningless to those who do not like it.

Your FIL sounds like a useless piece of garbage. He could have disclaimed the inheritance and let it pass directly to his children without consequence. If he hasn't received it yet it may not be too late.  You should talk to an attorney but I'm betting your FIL is too stupid to take the advice.  

P.s.  It's ok to insult in-laws, right?

Yes, he already claimed it a few years ago, yes, yes

Sorry. Your question related to whether the funds can be put in trust for the disabled SIL so thta she won't lose her disability benefits. The answer is likely yes. Look into a "special needs trust."

A little background here:  http://www.nolo.com/legal-encyclopedia/who-can-benefit-from-special-needs-trust.html

I am in a a similar position but The POS is my father

Are you the special needs child?  

I worry about the same thing with my inlaws, they have done nothing to prepare, afraid it's going to fall on my wife and I .

This is what he needs to do. His will could even create the trust. The only downside is that upon the death of the handicapped sister, the remaining trust assets would go to the state. If the money is significant enough, several thousand dollars can at least help fix that problem (to a degree anyways) so that some would be distributed to others.

Check the laws of your State first (as someone mentioned there in fact may be a "special needs trust" available) but nothing will happen without your FIL DOING SOMETHING: maybe begin the process for him and all he has to do is 'sign off' on the final documents (with a notarized witness).  The danger of course is without some type of direction from him, the State will step in (think probate) and everyone will be screwed .....best of luck with a difficult situation.

Deaths without wills and such bring out the worst in siblings/children.
I went through it when my father died.


The best thing to do IMO is not get involved.  Inheritance isn't guaranteed
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FIL should consult an elder law attorney.  It sounds like FIL should create special needs trust or supplemental needs trust for his dependent daughter.  When he dies, he can direct that dependent daughter's share go to the SNT.  This will allow those funds to be available to supplement but not supplant the benefits she is already receiving.  If dependent daughter has a living mother or grandparent, they can also create the trust.

If a third party creates the trust (parents/grandparents) then any remaining trust funds at dependent daughter's death can be transferred to beneficiaries.  If FIL fucks this up, it is possible to create a first party trust, however any leftovers must go back to the state.